S&P rates NMHG loan BB-

Standard & Poor's said it affirmed NMHG Holding Co.'s BB- corporate credit rating and B+ senior unsecured debt rating. The agency also assigned a BB- rating with a recovery rating of 3 to the proposed $225 million seven-year term loan of NACCO Materials Handling Group Inc., a wholly owned subsidiary of NMHG. The outlook is stable.

The loan is secured by a first-priority perfected mortgage, lien and security interest in all of NMHG's domestic real estate, equipment, fixtures and improvements, the agency said. It is also secured by a second-priority lien on collateral (primarily current assets and a pledge of stock) used for NMHG's $135 million asset-based revolving credit facility.

S&P said NMHG's strengths include its brands, its economies of scale and a strong distribution network.

The speculative-grade ratings reflect NMHG's aggressive financial risk profile, fair liquidity, weak business risk profile assessment and leading positions within cyclical and volatile markets, the agency said. The company's total debt to EBITDA was about 4.5x at Sept. 30, excluding cash balances in excess of its limited business needs.

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